TSMC and GlobalFoundries Announce Resolution of Global Disputes

The companies have agreed to a broad life-of-patents cross-license to each other’s worldwide existing semiconductor patents as well as those patents that will be filed during the next ten years as both companies continue to invest significantly in semiconductor research and development.

This resolution guarantees TSMC and GF freedom to operate and ensures that their respective customers will continue to have access to each foundry's complete array of technologies and services.

“We are pleased to have quickly reached this settlement that acknowledges the strength of our respective intellectual property. Today’s announcement enables both of our companies to focus on innovation and to better serve our clients around the world,” said Thomas Caulfield, CEO of GF. “This agreement between GF and TSMC secures GF’s ability to grow and is a win for the entire semiconductor industry which is at the core of today’s global economy.”

“The semiconductor industry has always been highly competitive, driving the players to pursue innovation that enriched the lives of millions of people around the world. TSMC has invested tens of billions of dollars towards innovation to reach our leading position today,” said Sylvia Fang, General Counsel for TSMC. “The resolution is a positive development that keeps our focus on advancing the needs of our customers for technologies that will continue to bring innovation to life, enabling the entire semiconductor industry to thrive and prosper.”

About TSMC
TSMC pioneered the pure-play foundry business model when it was founded in 1987, and has been the world’s largest dedicated semiconductor foundry ever since. The company supports a thriving ecosystem of global customers and partners with the industry’s leading process technology and portfolio of design enablement solutions to unleash innovation for the global semiconductor industry.

TSMC serves its customers with global capacity of more than 12 million 12-inch equivalent wafers per year in 2019, and provides the broadest range of technologies from 2 micron all the way to foundry’s most advanced processes, which is 7-nanometer today. TSMC is the first foundry to provide 7-nanometer production capabilities and the first to commercialize Extreme Ultraviolet (EUV) lithography technology in delivering customer products to market in high volume. TSMC is headquartered in Hsinchu, Taiwan. For more information about TSMC please visit http://www.tsmc.com.

About GLOBALFOUNDRIES
GLOBALFOUNDRIES (GF) is the world’s leading specialty foundry. We deliver differentiated feature-rich solutions that enable our clients to develop innovative products for high-growth market segments. GF provides a broad range of platforms and features with a unique mix of design, development and fabrication services. With an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF has the flexibility and agility to meet the dynamic needs of clients across the globe. GF is owned by Mubadala Investment Company. For more information, visit globalfoundries.com.

Kaarme
Senior Member

Posts: 3373
Joined: 2013-03-10

#5725178 Posted on: 10/29/2019 10:47 AM

It's pretty weird they needed the theatrics to reach this conclusion. Since I'm still disappointed in GF dropping out of the nm race, I could imagine GF doing this to weigh their current value in the competitor's eyes, to see if they still matter enough for TSMC to make a deal like this with them.

schmidtbag
Senior Member

Posts: 7249
Joined: 2012-11-10

#5725255 Posted on: 10/29/2019 02:54 PM

Basically the corporate equivalent of the following:
GF: Spontaneously slaps TSMC in the face out of envy
TSMC: Pulls out a giant knife
GF: "I was just kidding, bro!"

JamesSneed
Senior Member

Posts: 1667
Joined: 2017-02-14

#5725295 Posted on: 10/29/2019 04:44 PM

Make no mistake the fact TSMC did a cross licensing deal means they do not value GF as a direct competitor. TSMC gets to buy a never sue me again for a decade pass by allowing a company that will not compete with them to have access to their IP. Frankly TSMC was about to lay waste to GF in court because not only does TSMC have patents for everything they do(every foundry does) they also actually make things using said patents. Plus TSMC is very profitable they could have drug this out over years and not flinch. I honestly feel GF was looking for cash as they need it badly but once they sat down with TSMC's lawyers and realized that was never going to happen so settled for this in turn.

I too was pulling for GF but once they killed 7nm they really committed foundry suicide. They will not be around in 10-20 years as all these new fangled 7nm process become dirt cheap they will be left behind.

Aura89
Senior Member

Posts: 8397
Joined: 2008-07-31

#5725328 Posted on: 10/29/2019 06:03 PM

Basically the corporate equivalent of the following:
GF: Spontaneously slaps TSMC in the face out of envy
TSMC: Pulls out a giant knife
GF: "I was just kidding, bro!"

You say that, yet it seems like GF won in this deal.

"The companies have agreed to a broad life-of-patents cross-license to each other’s worldwide existing semiconductor patents as well as those patents that will be filed during the next ten years as both companies continue to invest significantly in semiconductor research and development."

This seems like a win for GF and basically pointless for TSMC